Slide 1: Jumbo Interactive Limited Results Presentation
JUMBO INTERACTIVE LIMITED RESULTS PRESENTATION For the financial year ended 30 June 2019 1 ABN 66 009 189 128 1 The accounts are in the process of being audited. FY19 Results Presentation | 1
Slide 2: Contents
CONTENTS RESULTS HIGHLIGHTS 2 SOFTWARE AS A SERVICE 6 VISION & STRATEGY 7 JUMBO LONG TERM GROWTH PROFILE 10 DIVIDENDS OVERVIEW 12 FINANCIAL PERFORMANCE 13 FINANCIAL POSITION & CASH FLOW 14 OUTLOOK 16 FY19 Results Presentation | 1
Slide 3: Results Highlights
RESULTS HIGHLIGHTS NEW SOFTWARE PLATFORM UNDERPINNING A MAKING THE MOST FROM A GOOD RUN SURGE IN CUSTOMER ENGAGEMENT OF JACKPOTS §§ 444,044 new accounts (106.6% increase on pcp §§ Powerball reached $100 million in August 2018 214,908) and January 2019 §§ 761,863 active customers (74.1% increase on p
Slide 4: Results Highlights (Continued): New Powerball Delivering More Large Jackpots
RESULTS HIGHLIGHTS (CONTINUED) NEW POWERBALL DELIVERING MORE LARGE JACKPOTS §§ New Powerball format a success §§ $100 million Powerball jackpot in August 2018 & January 2019 §§ 49 large jackpots (Oz Lotto/Powerball at or above $15 million) vs. 32 in FY18: –– Aggregate value of large jackpots - $1,88
Slide 5: Significant Growth Achieved in the Full Year
RESULTS HIGHLIGHTS (CONTINUED) SIGNIFICANT GROWTH ACHIEVED IN THE FULL YEAR1 §§ Customer Engagement and more Jackpots driving TTV up 75.1% to $320.7 million (pcp $183.1 million) –– 23.5% of all lottery sales in Australia are now sold online2 - Jumbo continues to participate in this significant growt
Slide 6: Revenue Diversification on Track
RESULTS HIGHLIGHTS (CONTINUED) REVENUE DIVERSIFICATION ON TRACK §§ Software as a Service (SaaS) - “Powered by Jumbo” –– Lottery operators worldwide are searching for proven software platforms to drive growth –– Smaller charity lotteries in particular are in need of digital solutions –– Mater Lottery
Slide 7: Software as a Service (SaaS) 'Powered by Jumbo'
SOFTWARE AS A SERVICE (SAAS) “POWERED BY JUMBO” §§ Large Global TAM –– US$303 billion Total Addressable Market 1 –– Only 7% is online –– “Powered by Jumbo” is a complete solution for lotteries seeking to move online §§ Initial target - Charity lotteries –– Smaller charity lotteries looking to improv
Slide 8: The $1 Billion Vision
VISION & STRATEGY THE $1 BILLION VISION ‘$1 Billion in ticket sales on the Jumbo platform by FY22’ §§ Includes both the ticket reseller business and the SaaS business §§ $320 million achived in FY19 CAN WE GET TO $1 BILLION IN TICKET SALES? §§ Ticket reseller business up 75% to $320 million TTV as A
Slide 9: Nuts and Bolts: How We Get to $1 Billion
VISION & STRATEGY (CONTINUED) NUTS AND BOLTS HOW WILL WE GET TO $1 BILLION IN TICKET SALES? §§ Best of breed Software Platform –– Jumbo’s own metrics prove the platform’s effectiveness –– Ongoing software development –– Continue to improve customer engagement KPI’s –– Continue to maintain ‘Powered b
Slide 10: Strategy - First to Market with Online Innovations
VISION & STRATEGY (CONTINUED) STRATEGY - FIRST TO MARKET WITH ONLINE INNOVATIONS §§ Lotto Party - Online lottery syndication: –– First online lottery operator to offer syndication in Australia –– Group play as a percentage of total TTV has increased to 10% –– Combats jackpot fatigue –– Drives growth
Slide 11: Demonstrated Long Term Growth
DEMONSTRATED LONG TERM GROWTH TOTAL TRANSACTION VALUE (TTV) REVENUE $80m $350m 5 year CAGR - 24.6% $70m $300m 5 year CAGR - 21.3% $60m $250m $50m $200m $40m $150m $30m $100m $20m $50m $10m $106.8m $128.4m $153.3m $145.3m $183.1m $320.6m $24.7m $29.0m $34.0m $32.4m $39.7m $65.2m 0 0 FY14 FY15 FY16 FY
Slide 12: Online Lotteries - A Growing Market
DEMONSTRATED LONG TERM GROWTH (CONTINUED) ONLINE LOTTERIES - A GROWING MARKET §§ 23.5% of Australian lottery tickets now sold online1 24% –– 5 year CAGR 22% 22% 23.5% –– 5 year CAGR 29.6% for Jumbo flagship website 5 year CAGR - 22% ozlotteries.com (lottery and charity games) 20% §§ The only pure di
Slide 13: Dividend Overview
DIVIDEND OVERVIEW EXCEPTIONAL SHAREHOLDER RETURN FROM A GROWTH COMPANY §§ Strong cash generative nature of operations supports dividend policy §§ Final fully franked dividend: –– 21.5 cents per share –– Record date 30 August 2019 –– Payment date 20 September 2019 –– Dividend Re-investment Plan (DRP)
Slide 14: Financial Performance
FINANCIAL PERFORMANCE FY19 FY18 Change KEY ITEMS: $’000 $’000 % §§ TTV up 75.1% §§ Revenue up 64.0% Total Transaction Value 320,659 183,146 75.1% §§ Total expenses up by 22.9% mainly associated directly with increased TTV and Revenue from continuing operations 65,212 39,775 64.0% revenue Cost of goo
Slide 15: Financial Position
FINANCIAL POSITION at 30 Jun at 30 Jun Change KEY ITEMS: 2019 2018 CASH $’000 $’000 % §§ Strong cash position of $84.6 million (up from $47.9 million at 30 Jun 2018) ASSETS 101,662 62,924 61.6% –– General funds up 84.0% to $73.8 million Current Assets 85,536 48,485 76.4% –– Customer funds up 37.5% t
Slide 16: Cash Flow
CASH FLOW at 30 Jun at 30 Jun Change KEY ITEMS: 2019 2018 $’000 $’000 % §§ Strong cash position of $84.6 million (up CASH FLOWS FROM OPERATING ACTIVITIES from $47.9 million at 30 Jun 2018 Receipts from customers 71,556 43,666 63.9% §§ Payments for intangibles relate to website Payments to suppliers
Slide 17: Outlook
OUTLOOK FY2020 OUTLOOK: §§ Strong start to July 2019 trading: –– TTV up 60.7% on the prior corresponding period (pcp)1 –– Record $110.0 million Powerball jackpot event occurred on 18 July 2019 –– 5 large jackpots and avg value $58 million at or above $15 million vs. 7 and avg value $32.1 million in
Slide 18: Disclaimer
DISCLAIMER This presentation contains summary information about the current make an investment decision regarding Jumbo shares. activities of Jumbo Interactive Limited (Jumbo). It should be read in All dollar values are in Australian dollars (A$) unless otherwise stated. conjunction with Jumbo’s oth
Slide 19: FY19 Results Presentation | 18
FY19 Results Presentation | 18